Leveraging Secondary Brand

Knowledge to build Brand Equity

Definition

By making a connection between the brand and

another entity, consumers may form a mental
association of the brand to this entity &, thus, to any
or all associations, judgments, feelings linked to that
entity
Leverage on Secondary Associations

1. Company To help create

2. Country of origin
3. Channels of • Awareness
Distribution
4. Other Brands • Meaningfulness
5. Celebrity
Endorsements
6. Sponsorship of • Transferability
Events
Building Customer-Based Brand Equity
BRAND BUILDING TOOLS AND OBJECTIVES CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITS

Choosing Brand Elements

Brand Awareness Possible Outcomes
Brand name Memorability
Logo Meaningfulness Greater loyalty
Symbol Appeal Depth Recall
Character Transferability Recognition Less vulnerability to competitive
marketing actions and crises
Packaging Adaptability
Slogan Protectability Breadth Purchase Larger margins
Consumption
More elastic response to price
decreases
Developing Marketing Programs
More inelastic response to price
Product Tangible and intangible increases
benefits Greater trade cooperation and
Price Value perceptions support
Distribution channels Integrate "push” and “pull” Brand Associations
Communications Mix and match options Increased marketing communication
efficiency and effectiveness
Strong Relevance
Consistency Possible licensing opportunities
Leverage of Secondary Associations
Favorable Desirable More favorable brand extension
Company Deliverable evaluations
Country of origin Awareness
Channel of distribution Unique Point-of-parity
Meaningfulness Point-of-difference
Other brands Transferability
Endorsor
Event
1.Company
Branding strategies of a product or service
adopted by a company are an important
determinant of the strength of association from
the brand to the company and any other existing
brands. Three main branding options exist for a
new brand:
1. Create a new brand
2. Adapt or modify an existing brand
3. Combine an existing and new brand
2.Country of Origin
• Country or geographic location from which it is
seen as originating may also become linked to
the brand and generate secondary associations.
• Thus, a customer may choose to wear Italian
suits, exercise in American sports shoes, drive a
German car, and drink English beer.
3.Channels of Distribution
• Channels can directly affect the equity of the
brands they sell by the supporting actions that
they take.
• Retail stores can indirectly affect the brand
equity of the products they sell by influencing
the nature of associations that are inferred about
these products on the basis of the associations
linked to the retail stores in the minds of
consumers.
4.Co-Branding
• Also called brand bundling or brand alliances-
occurs when two or more existing brands are
combined into a joint product or are marketed
together in some fashion.
 Examples:
 Sony Ericsson
 Yoplait Trix Yogurt
 Nestle’s Cheerios Cookie Bars
4.Ingredient branding
• This is a special case of co-branding that
involves creating brand equity for materials,
components, or parts that are necessarily
contained within other branded products.
• Betty Crocker baking mixes with Hershey’s
chocolate syrup
• Intel inside
4.Licensing
• Contractual arrangements whereby firms can use
the names, logos, characters, and so forth of other
brands to market their own brands for some fixed
fee.
 It can be a shortcut method of building brand
equity, licensing has gained popularity in recent
years. Examples:
 Entertainment (Star Wars, Jurassic Park, etc.)
 Television and cartoon characters (The Simpsons)
 Designer apparel and accessories (Calvin Klein,
Pierre Cardin, etc.)
5.Celebrity Endorsements
Using well-known and admired people to promote
products is a widespread phenomenon with a
long marketing history. The rationale behind
this is that a famous person can:
• Draw attention to a brand
• Shape the perceptions of the brand by virtue of
the inferences that consumers make based on
the knowledge they have about the famous
person
Celebrity Endorsements - Issues
• Celebrity endorsers can be overused by
endorsing so many products that they lack any
specific product meaning or are just seen as
overly opportunistic or insincere.
• There must be a reasonable match between the
celebrity and the product.
• Celebrity endorsers can lose popularity thus
diminishing their market value to the brand.
• Many consumers feel that celebrities are doing
the endorsement only for money.
6.Events
• A brand may seem more likable or even
trustworthy by becoming linked to a Sporting,
Cultural or any other event
• Sponsored events contribution to brand equity by
improving brand awareness through associations
• Adding new associations
• Improving
Strength,
Favorability
Uniqueness of Associations